If you google about trading strategies, one of the famous and most traded strategy is Open High Low. It is a simple strategy which can be traded in every stock which is in futures and options. It maintains a strict stop loss and target and has a decent win loss ratio. When a stock opens at open and that price remains low for some period of time during the day, it means that a buy (long) position needs to be created. Similarly, when a stock opens and makes high which is equal to its open, it means that a sell (short position) must be traded.
The rules of strategy are :
- At 9:20 trade stocks which have open=high or open=low.
- Stocks which have open=high need to be shorted at a proper resistance in order to make profits.
- Stocks which have open=low need to be brought at a proper support in order to make profits.
- Stop loss, risk and target must be upto user’s appetite.